The British Smaller Companies VCT has closed to new subscriptions, having reached its target funding just ahead of the end of the tax year.
According to YFM Equity Partners, which offers the products, both £40m offers are now fully subscribed. The two funds which had been open were the British Smaller Companies VCT and British Smaller Companies VCT2.
With the official date for the tax year being on a bank holiday weekend, there is very little time for investors to get their applications in for other VCTs before the tax year ends.
VCTs still open for investment as at the time of going to press include: Unicorn AIM VCT, which invests in companies traded on Aim; the Downing One VCT, which invests 60 per cent in unquoted companies and 40 per cent on Aim; and the Puma 11 VCT, a limited-life VCT focused on capital preservation through investment in asset-backed deals.
Anthony Yadgaroff, partner for London-based Allenbridge, said: “Clients are still interested in VCTs. We haven’t seen such a big rush as before although many providers only wanted small amounts.
“There’s a total of £160m that has already been invested so far across the market. Our own analytical tool, Allenbridge IQ has shown that there has been a big uptake of new advisers coming in and looking at VCTs. People have had experience of getting tax-free income and depending on the investments they have made, they could have seen some good returns. VCTs do have a role to play.”
Jason Hollands, managing director, Business Development and Communications for London-based Tilney Bestinvest, said: “With the Easter bank holiday meaning the last date for receipt of VCT applications this tax year is, in effect, 2 April, it really is the last chance saloon for making VCT investments against an individual’s 2014/15 tax liability.”